Today CNN reported that the number of homes in foreclosure in the United States decreased by 8.4 percent, or 130,000, in 2011, suggesting that the foreclosure crisis may slowly be coming to an end. The data came from the economic research firm CoreLogic.

The chief economist with CoreLogic said that there are a few reasons for the decline in the national foreclosure inventory last year. First, there were fewer new foreclosures added, which is partly due to the fact that the economy has slightly improved and also that lenders are more strict about who they give loans to.

Second, foreclosure properties are being processed and sold more quickly, the chief economist said. Also, lenders are being more meticulous with their foreclosure filings after the robo-signing scandal, during which lenders were filing sloppy and erroneous foreclosure documents with the courts.

Finally, the chief economist said that foreclosure prevention efforts on behalf of lenders, the government and homeowners have saved many homes from foreclosure. The Home Affordable Modification Program is one government program that aids homeowners at risk of foreclosure.

However, the article pointed out that some states, including Florida, still have an uphill battle.

CNN reported that Florida had the highest number of homes in foreclosure or at risk of foreclosure in December. More than 17 percent of homeowners were considered "seriously delinquent" in their mortgage payments, and close to 12 percent of homes with mortgages were in foreclosure.

According to CNN, one of the reasons that Florida and other states have been hit so hard by the foreclosure crisis is that foreclosures must go through the courts and so an enormous backlog was created with the wave of foreclosure filings a couple years ago.

Although it takes a lot more time for foreclosures to go through the court process, this allows judges to take a closer look at the cases before them, rather than just taking the lender's word for it that the home should be foreclosed. This helps protect the rights of homeowners.

Source: CNN, "Homes in foreclosure decline by 130,000," Feb, 8, 2012